BOC on track in settling USD 1 Bn due to creditors next week
The Bank of Ceylon will be totally settling their outstanding of over USD 1 billion due to its creditors next week, said Chairman of BOC Kanchana Ratwatte as the bank commenced their operations for the New Year 2023 at their Head Office, Colombo 1 yesterday.
He also said that when Sri Lanka announced a ‘restricted default’ last April their overseas counterpart banks increased the pressure for this ‘International exposure’ and the bank had over USD one billion (Rs. 369 billion) in arrears.
“However we were almost able to settle this amount by 2022 December 30. We still have USD 24 million in arrears and the bank will settle this next week,” he assured.
The Chairman said that increase of foreign remittances to the bank by their customers and other foreign transactions of the bank helped them towards the settlement of this amount and maintain a clean balance sheet in this segment.
He also recalled that BOC also played a key role in funding US dollars for fuel imports. The Chairman also said their overseas operations are likely to make the highest profit in the bank’s history. “Our Maldives operations are expected to make a record profit before tax of Rs. 9.1 billion,” he predicted.
The Bank of Ceylon Seychelles operation too is expected to make a historic PBT of Rs. 192.5 million. Also the bank’s Chennai operations in India too are expected to yield a PBT of Rs. 9.22 million which too is expected to better last year’s performance. The bank also made a PBT of Rs 27 billion up to September 2022.
Commenting on Sri Lanka he said the country’s economic fundamentals are now slowly and surely falling into place and inflation too will come down drastically by April 2023.
General Manager, BOC, K.E.D. Sumanasiri also endorsed this and said that they forecast positive developments for 2023 sans queues to purchase essentials and increase agricultural activity. “We also expect to receive the first tranche of the IMF assistance by the first quarter of 2023 which will also open up other funding and assistance from World Bank, Asian Development Bank, JAICA and other similar international bodies.
He said that due to some industries not performing well due to the downturn in economy last year the BOC launched a special business revival unit to assist entrepreneurs not only in funding but also providing them valuable guidance to bounce back.
He also said that in a bid to increase exports and increase foreign currency flow to Sri Lanka a Export Circle was introduced.
“We will also be focusing more on digital this year as well.”